Oil swings as soft growth data, supply disruptions tug markets
BNN Bloomberg
Oil fluctuated, struggling to find direction as traders eyed supply disruptions from a major pipeline and slowing economic growth in Europe.
West Texas Intermediate traded near US$97 a barrel in a choppy session on Friday. Crude is set to post a weekly loss as broader markets drove oil prices in sessions characterized by sharp swings amid low liquidity. Earlier, crude fell on soft Euro-zone economic activity, stoking fears that a recession might be on the horizon.
Traders are also monitoring the impact of a slowdown along the Keystone pipeline. TC Energy has reduced operating rates on a segment running from Canada’s oil sands to the hub at Cushing, Oklahoma, by about 15 per cent following a power-supply disruption.
“Futures are taking a breather this morning with the entirety of the energy complex drifting slightly lower to start the day,” analysts at wholesale-fuel distributor TACenergy wrote in a note to clients. “The market is in a wait-and-see state.”